LatinNews Daily - 17 June 2025

*The Dominican Republic’s central bank (BCRD) has announced plans to inject some RD$50bn (US$845m) into the financial system. According to the BCRD, these resources will be authorised at an interest rate no higher than 9% in annual terms for up to two years for economic sectors with a big impact in productive activity such as construction, manufacturing, exportation, and agriculture, as well as for the micro, small and medium-size business sector (MSME). The BCRD said that the aim is to provide the financial system with liquid resources to facilitate credit for productive sectors and promote economic growth. It underlines that these measures are being adopted in a context in which inflation is forecast to remain within the target range of 4% +/-1 established by the BCRD’s monetary programme, providing the space for monetary flexibilisation policies to be adopted, which in turn would contribute to the recovery of domestic demand. The BCRD highlights that as well as its latest announcement, its monetary board has authorised the use of RD$14bn in funds that have not been used following other measures announced in November 2024 to boost liquidity. These funds were assigned primarily for the MSME sector as well as for the acquisition and construction of low-cost housing. The BCRD also announced that a six-month deferral had been granted for RD$17bn of fast liquidity facilities (FLR), which were originally expected to return to the BCRD between June and December 2025. This measure helps to prevent the beneficiaries of loans granted under this facility from having to refinance at higher interest rates.

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